Question

James deposited $10,000 into an account that earns 5.5% compound interest, compounded semiannually. How much interest will James earn after 10 years?

Answer 1

$17,204.28

Explanation:

So first of all you want to start by finding what P, r and t would be.

• P = Principal amount ($$)
• r = interest rate (%)
• t = time (years)

Once I found all of those I put them into the equation (l = Prt) and solved (by putting it into a calculator obviously). That is how I came up with my answer. Check the screenshot provided to see what P, r and t would be and to see all my work! :)

Hope this helps! :)

Have a great day!